The intriguing results of a highly-publicized EEOC lawsuit highlight that if the EEOC is to win a judgment against an employer for disparate impact discrimination, it must use valid statistical methodology to prove “disparate impact”. This case demonstrates why that will not be easy to do. EEOC v Kaplan The EEOC recently sued Kaplan Higher Education… Read more »

Credit scoring is widely used in the underwriting and pricing of mortgage and consumer credit, and the credit information used to derive these scores is commonly used in employment screening for certain sensitive positions. Despite their widespread use, credit scores and credit histories raise concerns over an unfair disadvantage to minority populations. These concerns center… Read more »

Employment credit reports have been in the spotlight in recent years as states battle over whether employers should evaluate workers on the basis of their creditworthiness. Employers routinely use credit reports—for financially sensitive positions and alongside other background screening measures—to assess a candidate’s financial responsibility and potential risk. One argument being played out in the… Read more »

Earlier this week, a U.S. District Court in Ohio granted summary judgment to Kaplan Higher Learning Edu. Corp., et al, in a case that underscores the difficulty the EEOC faces in proving a case against employers for the discriminatory use of credit reports in the hiring process. The EEOC filed suit against Kaplan alleging that… Read more »

Is an Employer’s Use of Background Credit Checks Appropriate? Under fire from consumers, state legislators, and the EEOC, the background check utilized by employers to judge individuals’ suitability for certain jobs is being challenged. The use of background checks and specifically the background credit check has been under intensifying debate among national and state officials… Read more »